- Council Supports Increased Transparency of the Peer Review Process
- AICPA, NEFE and the Ad Council Partner to Improve Women's Financial Literacy
- Council Explores Financial Reporting for Private, For-Profit Entities
- Council Designates PCAOB under AICPA Code
- Small Business Benefits from Partnership with U.S. Department of Labor
- FASAB Continues as GAAP for Federal Financial
Reporting Entities
Highlights of action from the late-May AICPA Spring Council Meeting in Arizona include the following:
1. Council Supports Increased Transparency of the Peer Review Process
Council approved a resolution that supports the need for increased transparency of the peer review process. The resolution directs the Peer Review Board to assist members in complying with state licensing requirements. It also directs AICPA staff to initiate a member education program in order to educate members further on this issue.
2. AICPA, NEFE and the Ad Council Partner to Improve Women's Financial Literacy
AICPA announced a new partnership with the National Endowment for Financial Education and The Advertising Council to launch a national financial literacy campaign targeted at women. (See related story.) The program will focus on educating women about the importance of financial knowledge and planning. When the program begins in early 2005, financial education will be available through a toll-free hotline and web site.
3. Council Explores Financial Reporting for Private, For-Profit Entities
James G. Castellano, former AICPA chair and chair of the AICPA Private Company Financial Reporting Task Force, presented Council with an overview of the Task Force's work to date. The Task Force is charged with ensuring that an informed dialogue takes place on whether general purpose financial statements of private, for-profit entities, prepared in accordance with GAAP, meet the needs of all constituents of that reporting. Castellano's presentation was followed by sessions that allowed Council members to further explore and provide feedback on the topic. Read the discussion paper on this initiative.
4. Council Designates PCAOB under AICPA Code
The PCAOB was designated by Council as a body authorized to promulgate standards relating to the preparation and issuance of audit reports of public companies under Rules 201 and 202 of the AICPA Code of Professional Conduct. The designation allows for more efficient ethics enforcement.
5. Small Business Benefits from Partnership with U.S. Department of Labor
The AICPA reported on a new effort to help small businesses understand their responsibilities regarding retirement and pension plans. The AICPA is partnering with the U.S. Department of Labor to provide a series of seminars called "Getting it Right: Know Your Fiduciary Responsibilities." The DOL seminars will educate small business plan sponsors and other fiduciaries about their responsibilities under the Employee Retirement Income Security Act (ERISA). The campaign includes educational materials, which will be featured on the DOL web site.
6. FASAB Continues as GAAP for Federal Financial Reporting Entities
The AICPA Governing Council approved a recommendation for the Federal Accounting Standards Advisory Board (FASAB) to continue to establish generally accepted accounting principles for Federal financial reporting entities. FASAB was designated by Council in 1999 as the body to set GAAP for federal entities under Rule 203 of the AICPA's Code of Professional Conduct, subject to a five-year review.